Article | REF: AG5225 V1

Logistics outsourcing

Author: Victor YZERD

Publication date: October 10, 2003

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2. In-house or outsourcing?

The 1990s saw the rapid development of outsourcing. It should be noted, however, that outsourcing does not affect all functions, sectors and companies in the same way. So, what can we say about the decision to outsource? To answer this question, we need to analyze the factors that influence business leaders' choices.

Outsourcing is not always the rule. Many companies prefer to keep their various activities and specialties in-house, or even to take them over after having entrusted them to a service provider or, more generally, a subcontractor.

Champions of the "all-in-house" approach defend their choice by arguing that the risks associated with outsourcing are high: you no longer control your resources, and you sacrifice the expertise of staff who have been trained and are accustomed to your specific practices. What's more, your service provider...

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